SPUS vs HLAL: Which Halal ETF Is Better?
The two biggest US-listed halal ETFs go head-to-head. Both target US equities — the differences are in methodology, scope, and oversight.
Quick Answer
- 1SPUS is better for investors prioritizing the lowest fee (0.49%), deepest liquidity ($800M+ AUM), S&P 500 methodology, and independent Shariah oversight (Ratings Intelligence Partners).
- 2HLAL is better for investors who prefer FTSE methodology, want mid-cap exposure beyond the S&P 500 universe, or use the Wahed platform ecosystem.
- 3Both are legitimate Shariah-compliant products. The performance difference is driven by index methodology and sector weights, not by one being "more halal" than the other.
Head-to-Head Comparison
| Feature | SPUS | HLAL |
|---|---|---|
| Provider | SP Funds | Wahed Invest |
| Index | S&P 500 Shariah Industry Exclusions | FTSE USA Shariah |
| Shariah Board | SP Funds Shariah Board | Yasaar Limited (4 audits/yr) |
| Expense Ratio | 0.45% | 0.50% |
| AUM | $178M | $727M |
| Holdings | 230–280 (large-cap) | 199 (large & mid-cap) |
| Inception | December 2019 | July 2019 |
| Includes Mid-Caps | No (S&P 500 only) | Yes (FTSE USA) |
| Distribution | Quarterly | Quarterly |
| Exchange | NYSE Arca | NASDAQ |
01Index Methodology: S&P vs FTSE
The most important difference between SPUS and HLAL is the underlying index. SPUS tracks an S&P 500 Shariah index — starting from the 500 largest US companies. HLAL tracks a FTSE USA Shariah index — starting from a broader universe that includes mid-cap stocks.
Both indices apply conceptually similar Shariah screening (sector exclusions + financial ratio tests), but the starting universes and screening-edge decisions differ. This means some stocks appear in one fund but not the other, particularly at the smaller end of the market cap spectrum.
In practice, the top 50–100 holdings overlap heavily. The mega-cap technology and healthcare names that dominate both funds are the same: Apple, Microsoft, NVIDIA, Amazon, Alphabet, Meta, and similar. The divergence appears in the mid-cap tail and in borderline screening decisions.
03Which Should You Choose?
Investors prioritizing the lowest cost, deepest liquidity, S&P index methodology, or independent Shariah certification may prefer SPUS.
Investors who prefer FTSE methodology, want mid-cap exposure, use the Wahed platform, or value the slightly different screening-edge composition may prefer HLAL.
Holding both is possible but creates significant overlap. Most investors choose one as their core US equity allocation based on these preference factors. Neither fund is objectively superior — the choice reflects methodology preference and portfolio construction philosophy.
Screen stocks yourself
Run AAOIFI and DJIM screens on any stock — real-time data, full methodology transparency.
Frequently Asked Questions
Related Reading
Compliance classification: [ANALYSIS]
This content is for educational and informational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Shariah compliance assessments are based on publicly available data and established screening methodologies. They are not religious rulings (fatwas). Investors should consult a qualified Shariah scholar and a licensed financial advisor before making investment decisions.
All data is sourced from public filings and third-party providers. Compliance status is subject to change at quarterly reviews. Past performance is not indicative of future results. Halal Terminal is not a broker-dealer or investment advisor.